Tel aviv: A budget dispute between Israel's defense and finance ministries has halted purchases of interceptor missiles for air defense systems, Israeli media reported Tuesday. The disagreement has significant implications for the country's defense capabilities, particularly concerning its air defense systems, which rely heavily on these interceptor missiles.

According to Anadolu Agency, Israel's Channel 13 highlighted that the core of the dispute revolves around 15 billion shekels ($4.92 billion) that the military claims should have been allocated to its budget. This financial standoff has led to delays in payments essential for maintaining and advancing military operations and technology.

The Finance Ministry has countered the military's claims, arguing that the funds were not immediately necessary for operations but were intended to cover debt that had been accumulated without prior approval. This conflict has put a strain on defense spending, with repercussions already being felt across various military operations.

Initially, Israel's 2026 military budget was set at 143 billion shekels ($47 billion). However, after Israeli attacks on Iran and Lebanon, Prime Minister Benjamin Netanyahu ordered an increase to 183 billion shekels ($60 billion), as reported by the Israeli Public Broadcasting Corporation. Despite this increase, a first payment of 15 billion shekels was due in August and remains untransferred.

The broadcaster noted earlier this month that this financial crisis is affecting Israeli military operations in Gaza, the occupied West Bank, and Lebanon, alongside a shortage of spare parts. Army chief of staff Eyal Zamir acknowledged the ongoing budget dispute in late August, noting that the military is also contending with a broader 'campaign' concerning funding.